By the beginning of this month, Flipkart has revised its policies for sellers in certain areas, that are very important for you to know:
- They cut down the product return time for top selling products, namely, books, electronics, and mobile phones from 30 days to 10 days.
- They increased the seller commission for the aforementioned category of products.
- They are stopping the Zero+ commission policy that they started early in 2016.
Earlier, Economic Times had reported about the same.
Let’s get to know about each of these revisions in a little more detail:
Product Return Policy
Earlier this year, Amazon had also cut down the product return time to 10 days, with absolutely no return possible for electronic items.
Related: How to sell on Amazon.com?
Flipkart has also followed suit now, and has decreased the product return time for electronics, books and mobile phones from 30 days to 10 days. This move is expected to motivate more sellers to sell on this platform.
The 30-day return policy will remain only for clothing, footwear, watches and eyewear, jewelry, and fashion accessories, as well as large appliances.
We have been hearing for quite some time about the huge losses sellers have had to face due to the increased returns from buyers, and also malpractices from their side. To reduce all this, Flipkart has come up with this standardized return policy.
Related: Learn How to sell on Flipkart!
“Some buyers make unreasonable returns when they change their mind post-delivery”, said a seller.
Now, sellers will have the advantage of passing on the shipping cost to customers. But, they will have to pay for the reverse logistics when a customer returns the product, as the marketplace does not seek sellers’ approval when a customer wants to return the product.
Increased Seller Commission
Around the beginning of this month, Flipkart sent an email to almost 90,000 of its third party sellers informing them about the increased rates of seller commission.
Earlier this year, Amazon and Snapdeal had also increased the seller commission.
This revision on seller commission will increase the product prices by 9% on Flipkart. This change will be applicable to the sellers starting June 20, 2016.
“Our commission and fee structure remains competitive and in many categories better than other marketplaces. Flipkart is closely working with all our sellers to ensure a smooth transition.”, said a Flipkart spokesperson.
This move is expected to improve margins and reduce losses. Due to the high discounting practices, huge losses had to be incurred by the marketplace earlier.
End of the Zero+ Commission Policy
The Zero+ commission policy launched by Flipkart early in 2016, has been put to stop.
Following the technique used by the Chinese e-commerce player Alibaba, the Zero+ commission policy started with 350 reputed sellers on Flipkart. With this policy, Flipkart stopped charging commission from certain sellers, instead they would they were allowed to advertise on the marketplace for a fee.
The company stopped this policy, terming it to be a ‘complex’ one.
As sellers, it is important for you to keep track of the changes and revisions being made by the largest marketplace in India, Flipkart, so as to remain in the forefront of this race.